Executive summary

There will be no ‘new normal’ in the future of work.

Our global research indicates that the future workplace will be defined by a continuous state of flux. While this will bring many surprising benefits for recruiting, productivity, and retention, business leaders aren’t moving fast enough to adapt.

In KellyOCG Workforce Agility Report 2021 survey of over 1,000 senior executives across 13 countries, 60% of executives agree that talent has never been more important as a source of competitive advantage. They also acknowledge that the dramatic reshaping of the way we work will change how they manage talent, utilize technology, and support the wellbeing and productivity of their employees.

Covid-19 has had an unprecedented impact on society and the way we live and work. It has required all of us to adapt and be resilient in times when we have no visibility of what the future will bring us.

Maurice Benz
Global Category Manager, External Workforce, Novartis

But not all businesses are prepared for this shift.

Post pandemic, over half (59%) of executives say their businesses will adopt a hybrid working model, giving employees the flexibility to work either in the office or at home; yet one in four believe their leaders lack the skills to manage the workforce they want to build.
27% are unsure of what their employees want in terms of a post-Covid working environment. Understanding employees’ preferences in this area is critical, given that a quarter of US workers plan on looking for a new job when the threat of the pandemic decreases. Furthermore, Millennials are the largest generation in the workforce and one in three has plans to look for a new job with a different employer once concerns around the pandemic subside.¹
Less than half of executives (49%) say they have a clear view of the optimal mix of talent required across all business areas; and 25% say that their current workforce has skill gaps they don’t know how to fill.
38% report that employee wellbeing has deteriorated or stagnated in the past 12 months.
More than half (55%) report that talent from under-represented groups has been disproportionately impacted by the pandemic – yet most lack an effective diversity, equity, and inclusion (DEI) strategy to support talent from under-represented groups.
Only a minority of organizations are using leading-edge technologies to respond to critical issues around workforce planning and management, including monitoring productivity and efficiency (44%), managing a remote workforce (38%), and predicting skills requirements (32%).

¹https://news.prudential.com/presskits/pulse-american-worker-survey-is-this-working.htm

However, within our data we also identified a group of Vanguards (about 10% of the respondents). Where other companies are struggling, Vanguards report that employee wellbeing and productivity have actually improved during the pandemic, and almost all of them (94%) report revenue growth over the past three years.

What makes Vanguards different?

The research shows that Vanguards are taking a strategic, long-term approach to improving the resilience, agility, and wellbeing of their workforces, compared with the ‘Laggards’ (respondents that report a decline in employee wellbeing and productivity over the past 12 months). Specifically, the data uncovers four key dynamics of the Vanguards’ response to the pandemic that are helping them create a more agile and resilient workforce, and a more profitable business model.

#1 They amplify workforce fluidity.

Vanguards are more likely to have a comprehensive strategy for bridging skills gaps by employing new talent, bringing on contingent labor, and engaging with consultancies to understand the skills they need. This gives their organizations the agility to fill skills gaps and meet business requirements rapidly.

#2 They are building a better employee experience.

A huge 91% of Vanguards say that improving the employee experience is as high a business priority as improving the customer experience. They are also more likely to benchmark their employee value proposition (EVP) against those of other firms in their sectors, and to track the employee experience through surveys and focus groups as a way to constantly improve company culture.

#3 They are improving DEI.

Vanguards are more likely to have company-wide DEI strategies designed to attract talent from underserved communities, and to provide training and support to these employees throughout their careers.

#4 They understand that adopting leading-edge technologies is critical to managing a workforce in flux.

Vanguards are far more likely to deploy new tools to better manage all talent, boost collaboration, and enhance the employee experience, which will give them an edge over their peers in the future.

“Taken together, the research findings suggest that, by focusing on the four dynamics – talent fluidity, the employee experience, DEI, and technology-enabled workforce management – organizations across industries can boost employee engagement and productivity, and reinforce their own ability to recruit and retain talent,” explains Tammy Browning, President of KellyOCG. “Ultimately, this will give businesses the edge they need to succeed in an increasingly competitive and fast-changing marketplace – ensuring their workforce is fit for a future in flux.”

This report explores the data in detail, highlighting where business leaders are struggling today, what practical steps they can take to adapt, and the lessons they can learn from Vanguards to adapt to and thrive in a post-pandemic world.